Sept. 25--City analysts lined up to tell investors to abandon ship at Carnival today.
Analysts at Morgan Stanley, Exane BNP Paribas and Natixis all issued the equivalent of Sell ratings after the cruise-ship operator yesterday reported a 30 percent fall in its third-quarter profit and warned it could make a loss.
The group has underperformed since last year's disaster when its cruise liner the Costa Concordia ran aground off the Tuscan coast claiming 32 lives. It has since had problems on two other ships and chairman Micky Arison said its Costa brand could take another three years to recover fully.
Shares tumbled 5.6 percent yesterday but lost another 7 percent today. Morgan Stanley's scribblers said its early 2014 full-year earnings guidance "implies a sluggish yield recovery" as well as increased costs. They predicted a "major restructuring and/or cash return" is likely.
Punters agreed with the brokers' advice and it sank 158p to 2099.5p.
Markets were broadly flat but a slightly brighter outlook in Europe after comments from German finance minister Wolfgang Schaeuble helped the FTSE 100 rise 12.13 to 6583.59.
Engineer Amec decided that after five years it was a good time for some broker housekeeping. It has ditched Deutsche Bank and replaced them with Barclays to join joint brokers Bank of America Merrill Lynch. Amec was unmoved at 1090.5p.
Analysts at UBS raised their price target for aerospace group BAE Systems to 490p today after new contract wins for the group yesterday and it was 11.2p up at 462.2p.
Over on the small-cap index, pub group Punch Taverns, which is still in talks to sort out its debt situation, reported a 23 percent full-year pre-tax profit slump to pounds sterling 49 million and dipped 0.5p to 13.9p.
Fashion and homewares retailer Laura Ashley disappointed investors with falling comparable sales and it lost 3.8p, or 14 percent, to 22.5p.
Over on AIM, iodine-maker Iofina jumped 28.8p to 174.9p after it reported record half-year sales.
Panmure Gordon's analysts declared Animalcare _ the group which sells medicines for pets _ is a "mini Dechra at the start of journey". Panmure likened the rabbit, cat and dog drugs group to the mid-tier listed Dechra Pharmaceuticals and started covering it with a Buy. They said it "allows investors access to large and fast-growing markets which are relatively predictable and without much economic cycle volatility." It said the market is worth pounds sterling 565 million and Animalcare has a 1.3 percent market share at present. But investors have yet to heed Panmure's advice and the pet specialist was unmoved at 172.5p.